16 Foundation® Computer Strategies - 16.1 Andrews - Cost Leader with a Product Lifecycle Focus

16.1 Andrews - Cost Leader with a Product Lifecycle Focus

The Andrews computer team will adopt a Cost Leader with a Product Lifecycle Focus strategy, and will seek to minimize costs through efficiency and expertise. Products are allowed to age and change in appeal from High Tech to Low Tech buyers.

Vision Statement

Reliable products for mainstream customers: Andrews brands offer value. Our primary stakeholders are bondholders, stockholders, customers, and management.

Research and Development (R & D)

We will have low R&D spending with very little repositioning on existing products. We will introduce a new product to the High Tech segment every 2-3 years.

Marketing

The Erie team will spend modestly on promoting and selling products in our targeted segment. Our prices will be lower than average.

Production

We will significantly increase automation levels early in the product's life-cycle.

Finance

We will finance our investments primarily through long-term bond issues, supplementing with stock offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are not adverse to leverage, and expect to keep debt/equity between 2.0 and 3.0. We measure performance in terms of stock price, ROE, and ROS.